Here are my mortgage rate predictions for 2009. Of course, no one can be 100% sure of exactly about what will happen, but I think we do have some good information to work with. Even a small difference in interest can mean a lot of money for a homeowner. Know when the lowest mortgage rates of 2009 will be:

The housing market is in pretty bad shape. This is due to a tough economy, and a lot of homeowners having mortgages which they can not afford. In response to this, earlier this year, mortgage rates were dropped to 4.69% or so for a typical fixed rate mortgage. President Obamas stimulus plan allowed the rates to fall so low, and a chance for homeowners to save their home from foreclosure or themselves from defaulting on their mortgage. When rates initially dropped to that low 4.69% rate, homeowners flocked to refinance their mortgage. These applications quickly piled up for the mortgage lenders and banks, and they were overwhelmed. The interest rates needed to be increased, and they were to 5.19%. This minimal increase kept back homeowners who just wanted to save money, and still allowed enough savings to allow homeowners who truly needed to save money the chance. Things will be changing though, and this is where I make my predictions.

I think that for the rest of this year, 2009, we will see lower mortgage rates. I think that sometime around October of this year, mortgage rates will drop to their prior lows of 4.69% for a standard fixed rate mortgage. This will be around the time mortgage lenders and banks are ready for a whole new round of refinancing applications.

Homeowners who can should wait until the lowered rate kicks in. However, if you are facing financial problems, or risk losing your home, you need to take action now.

-M Petrone
www.RefinancingCondo.com

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